Board gender diversity and corporate environmental, social and governance performance: evidence from New Zealand listed firms

Abstract

Purpose: This study aims to examine whether board gender diversity is significantly and positively associated with corporate environmental, social and governance (ESG) performance, as well as the link between board gender diversity and each of the three ESG pillars. Design/methodology/approach: Aligning with stakeholder and critical mass theories, this study uses ordinary least squares regression and fixed-effects models on the sample comprising New Zealand listed firms from 2016 to 2022. Findings: The findings reveal that board gender diversity positively and significantly is associated with firms’ overall ESG performance. In addition, female board representation positively and significantly associates with the governance pillar but, not with the other two. The findings highlight that a higher proportion of female board representation enhances a firm’s overall ESG performance by improving its corporate governance initiative. Originality/value: Besides adding to the literature on board gender diversity’s association with New Zealand listed firms’ ESG performance, the findings provide insights for companies, policymakers and stakeholders.